![\"\"](\"https:\/\/setkab.go.id\/wp-content\/uploads\/2026\/08\/President-Prabowo-SOEs-Belong-to-Indonesian-People-Restructuring-Done-to-Boost-Efficiency-Performance.png\")
<\/p>\n<\/p>\n
State-owned enterprises belong to all Indonesians and must be managed for the greatest prosperity of the people, according to President Prabowo Subianto.<\/p>\n
The President made the statement in his State of the Nation Address at the Annual Session of the People\u2019s Consultative Assembly (MPR) and the Joint Session of the House of Representatives (DPR) and the House of Regional Representatives (DPD) at Nusantara Building in the Parliamentary Complex, Jakarta, Friday (08\/14).<\/p>\n
The Head of State pointed out that a massive restructuring carried out by the Government and sovereign wealth fund Danantara has eliminated non-productive SOEs, saved operational costs, and increased SOEs\u2019 performance.<\/p>\n
\u201cSOEs belong to all Indonesians, not to their boards of directors or commissioners, nor may they serve as a source of funds for those in power,\u201d he said, adding that when Danantara was established, the Government identified 1,074 SOEs, including subsidiaries and sub-subsidiaries. This large number includes non-productive SOEs, thus needing a comprehensive restructuring.<\/p>\n
The Government has closed 290 SOEs as of today and aims to have a maximum of 300 SOEs, leaving only productive ones that can bring added value to the people.<\/p>\n
\u201cOnly those that are productive and create added value for the people will be retained. This may be the largest corporate restructuring in the world,\u201d he said.<\/p>\n
The President further stated that the downsizing has saved over Rp50 trillion in overhead costs, including directors’ and commissioners\u2019 salaries, office rentals, vehicle rentals, and official travel, adding that the Government aims to increase efficiency to more than Rp70 trillion by the end of 2026.<\/p>\n
\u201cJust imagine what we could accomplish with Rp50 trillion: how many community health centers we could renovate, how many schools we could refurbish, and how many homes we could provide for our people,\u201d he said.<\/p>\n
According to President Prabowo, the results of SOE restructuring are reflected in improved SOE performance. In the first half of 2026, the profit of state-owned tin mining company PT TIMAH reached Rp2.7 trillion, or nine times higher than the same period last year.<\/p>\n
The net profit of state-owned cement producer PT Semen Indonesia also increased by 408.9 percent, that of state-owned fertilizer producer PT Pupuk Indonesia by 252.8 percent, that of state-owned oil and gas company PT Pertamina by 86 percent, that of state-owned auction company Pegadaian by 84.4 percent, that of state-owned port operator Pelindo by 60.4 percent, and that of state-owned plantation company PTPN by 54.4 percent.<\/p>\n
Improvements were also made at the state-owned airline Garuda Indonesia. As of June 2026, 20 grounded aircraft have been reactivated, bringing the number of active aircraft to 104. The President expressed hope that the company can become sustainably profitable by the beginning of 2027.<\/p>\n
As for governance, President Prabowo underscored that he would not tolerate financial reports that do not reflect the real conditions, adding that the Government has corrected SOEs\u2019 reports to ensure that every figure is accurate and accountable.<\/p>\n
\u201cI will not tolerate any manipulation of figures or reports. We must have figures that are accurate and reliable although they are not always great,\u201d he said.<\/p>\n
The President pointed out that following the correction, SOEs\u2019 profits rose from Rp186 trillion in 2024 to Rp326 trillion in 2025, an increase of 75.3 percent. Meanwhile, he went on, dividends paid by SOEs in 2025 reached Rp142.3 trillion. Excluding state capital injections, SOEs\u2019 net dividends grew from Rp53 trillion in 2024 to Rp138 trillion in 2025 and are projected to reach Rp200 trillion in 2026.<\/p>\n
\u201cIt demonstrates that with sound management and a genuine commitment to integrity, success can be achieved very quickly,\u201d he said while expressing appreciation to Danantara.<\/p>\n
Additionally, the President stated that improvements in SOE performance are being used to accelerate downstreaming and industrialization efforts. Danantara has carried out groundbreaking for 26 downstreaming projects throughout 2026, which include coal-to-DME processing, copper and gold downstreaming, the salt processing industry, and alumina-to-aluminium smelter, aimed at creating tens of thousands of new jobs.<\/p>\n
The President also said that the Government is set to strengthen upstreaming by acquiring top global companies to obtain technology, intellectual property, management, markets, and experience necessary to reinforce the national economy.\u00a0(BPMI of Presidential Secretariat)<\/strong> (DH\/MMB)<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" State-owned enterprises belong to all Indonesians and must be managed for the greatest prosperity of the people, according to President Prabowo Subianto. The President made the statement in his State of the Nation Address at the Annual Session of the People\u2019s Consultative Assembly (MPR) and the Joint Session of the House of Representatives (DPR) and […]<\/p>\n","protected":false},"author":88,"featured_media":327559,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[77],"tags":[],"class_list":["post-327555","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"yoast_head":"\n